My wife has a side gig and is compensated (earned income). There is no W-2. I listed the income under Miscellaneous income. After I entered a Roth IRA contribution the software told be I had an excess contribution. Is a Roth contribution only allowed on W-2 income?
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The side gig is earned income which will allow a Roth contribution. But you have to report that income. She is self employed so must complete Schedule C.
This needs to be reported as income from self-employment, not miscellaneous income.
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